NSE India Ownership Tracker: FPIs Pull Back as Domestic Investors Reach Record Highs

The NSE India Inc. Ownership Tracker for Q3 FY25 highlights a shift in equity ownership, with promoters and Foreign Portfolio Investors (FPIs) retreating, while Domestic Mutual Funds (DMFs) and individual investors steadily grow their influence.

The latest figures reveal that promoter holdings in NSE-listed and Nifty 500 companies dropped for the 2nd consecutive quarter, while FPI ownership fell to its lowest levels in years. Meanwhile, domestic mutual funds (DMFs) and retail investors reached record-high stakes, shifting the dynamics of the market.

Promoter ownership in NSE-listed and Nifty 500 firms decreased by 67bps and 92bps QoQ, respectively, to 50.4% and 49.6%. The most significant reduction was seen in government holdings. In the Nifty 50, promoter stakes slid by 96bps to a 22-year low of 41.4%.

FPI Holdings Hit Multi-Year Lows

FPI ownership in NSE-listed and Nifty 50 companies dropped to 17.4% and 24.3%, marking the lowest levels in 13 and 12 years, respectively. This decline, driven by significant selling in large-cap stocks, coincided with FPI outflows of $11.9 billion in Q3 and $12.1 billion in Q4 (as of February 17, 2025). The value of FPI holdings in NSE-listed firms decreased by 8.3% QoQ, marking the first decline in seven quarters.

DMFs Continue Record Inflows

Domestic Mutual Funds (DMFs) increased their stake to a record 12.2% in Nifty 50, 10.5% in Nifty 500, and 10% in NSE-listed companies. Strong SIP inflows helped DMFs invest ₹1.5 lakh crore in Q3, with ₹71,000 crore in early Q4, bringing total fiscal inflows to ₹4.2 lakh crore. Active funds’ share rose 44bps QoQ to 8.1%, while passive funds remained stable at 1.8%.

Retail Investors Outpace FPIs for the First Time Since 2006

Individual investors increased their non-promoter ownership in NSE-listed firms by 20bps QoQ, reaching a 70-quarter high of 9.8%. They invested ₹56,000 crore in Q3, with their share in Nifty 500 rising to 8.8%, while Nifty 50 holdings stayed at 8%. For the first time since 2006, individual investors (directly and through mutual funds) control 18.2% of the market, surpassing FPI ownership. Household equity wealth has surged by ₹30 lakh crore in the past two years, reaching ₹79.6 lakh crore (a 10-year CAGR of 21.3%).

Portfolio Shifts

FPIs increased their exposure to Financials while reducing their positions in Consumer Staples, Energy, and Materials. DMFs, on the other hand, lowered their stake in Financials but became more optimistic on Consumer Discretionary and less negative on Energy and Materials.

Declining Exposure to Large-Cap Stocks

Both institutional and individual portfolios have been shifting away from large-cap stocks. Nifty 50 and top-decile companies now represent just 58.7%/85.9% of institutional holdings and 35%/63.2% of individual holdings, both nearing multi-year lows. This shift indicates growing exposure to mid-and small-cap stocks, further aided by a reduction in market concentration levels post-pandemic.

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